Workforce Payments Guide Taiwan

Last updated: Dec 18, 2023

Currency
New Taiwan Dollar (TWD)
Payroll Frequency
Monthly
Capital
Taipei
Fiscal Year
1 January- 31 December
Employer Taxes
18.202%
Employee Costs
4.651%
Central Bank
Central Bank of the Republic of China (Taiwan)
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Payments Coverage

Papaya Global is only able to support SWIFT payments.

Contractor Payments

Papaya Global supports payments to contractors in Taiwan. The payout currency may vary based on the receiver bank account setup when receiving foreign currencies. It is advised for contractors to reach out to their bank to confirm how foreign currencies are handled

Payroll Frequency

Monthly

KYC

In Taiwan, the Know Your Customer (KYC) process is a legal requirement for almost all exchanges. The specific KYC process may vary, but it generally involves the following steps:

Identity verification: This involves verifying the identity of the client’s customers. It includes the names of the company’s directors, business addresses, national insurance or social security numbers, company numbers, and so on.

Document verification: The process of verifying the authenticity of a government-issued identity document.

Due diligence: Measures taken to mitigate risk before entering into an agreement or carrying out a financial transaction with another party.

Enhanced Due Diligence (EDD): A process that executes a greater level of scrutiny related to potential business relationships.

Third-party diligence: Outsourcing of the due diligence process to an external party by the client, who is originally responsible for carrying out due diligence activities.

Banking Regulations

In Taiwan, there are several laws and regulations that could impact cross-border workforce payments. Here are some key points:

E-commerce regulation: In Taiwan, e-commerce is generally not treated differently from non-e-commerce businesses and is subject to the Taiwan Civil Code and other laws and regulations that may apply, such as the Personal Data Protection Act (PDPA) to the extent personal data is involved.

Electronic Signature Act (ESA): The chance that the Electronic Signature Act (ESA) would apply is generally higher for B2B e-commerce (so far as the “electronic signature” defined under the ESA is concerned).

Consumer Protection Act (CPA): In Taiwan, the main laws governing B2C e-commerce include the Consumer Protection Act (CPA) and the Guidelines for Consumer Protection in the Context of Electronic Commerce (E-Commerce Guidelines).

Tax on cross-border electronic services: The Ministry of Finance in Taiwan has tax regulations on cross-border electronic services.

Opening a Bank Account

To open a company bank account in Taiwan, you typically need the following:

  • Unified Business No. (VAT number): This is needed to open a business bank account in Taiwan
  • Alien Resident Certificate (ARC) or a Taiwan ID issued by the Taiwanese government
  • Valid passport
  • Local phone number
  • Valid email address
  • Minimum deposit amount: This varies from bank to bank

Please note that every bank has a different policy and it’s recommended to check with your bank on their requirements.

Generally, opening a business bank account in Taiwan takes about 4 weeks.

International Banks

Several major foreign banks operate in Taiwan. Here are some of them:

  • HSBC Bank (Taiwan)
  • Citibank
  • Standard Bank of South Africa
  • State Street Bank and Trust Company
  • MUFG Bank
  • Crédit Agricole Corporate and Investment Bank
  • BNP Paribas Fortis

Major local banks

Here are some of the major local banks that operate in Taiwan:

  • Land Bank of Taiwan
  • Taiwan Cooperative Bank
  • First Commercial Bank
  • Hua Nan Commercial Bank
  • Chang Hwa Bank
  • Citibank Taiwan
  • Shanghai Commercial and Savings Bank
  • Taipei Fubon Bank
  • Taipei Star Bank
  • Cathay United Bank
  • Bank of Kaohsiung
  • Mega International Commercial Bank
  • O-Bank
  • Taiwan Business Bank
  • Standard Chartered Bank (Taiwan)

Payment Tools

ECPay: ECPay provides a variety of payment tools, including credit cards, ATM transfers, convenience store payment code, etc., all of which can be used without applying to each individual bank and convenience store.

  • Mobile payment: Most Taiwanese consumers prefer mobile payment, followed by credit cards and cash.
  • Payment cards: Payment cards are the most preferred payment method for e-commerce purchases in Taiwan.
  • Electronic payment institutions: The top three electronic payment institutions based on transaction amount are Jko Pay , iPass Mondy , and E Sun Bank.

Cryptocurrency

Cryptocurrencies are currently not accepted as currencies in Taiwan. The Central Bank of the Republic of China (Taiwan) and the Financial Supervisory Commission (FSC) have stated that Bitcoin should not be considered a currency, but rather a highly speculative digital virtual commodity. Since 2014, the FSC has ordered local banks not to accept Bitcoin or provide any services related to Bitcoin.

However, there are regulations governing tokens with the nature of securities,  commonly called security tokens, and their offerings, commonly called security token offerings (STOs). The FSC and the Taipei Exchange (TPEx) jointly worked on a set of regulations governing STOs, which was finalized in January 2020.

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